How is it fined for not requesting bankruptcy when a business loses its ability to pay?

Legal Consulting Office of Lao Dong Newspaper answers:

Article 71 of Decree 109/2026/ND-CP, stipulating penalties for administrative violations in the field of judicial support; judicial administration; marriage and family; civil judgment enforcement; recovery, bankruptcy of enterprises, cooperatives (effective from May 18, 2026), stipulates as follows:

A fine of between 1 million VND and 3 million VND shall be imposed on the acts of the legal representative of a business or cooperative; the Board of Directors of a joint-stock company, the Members' Council of a two-member or more limited liability company, the Members' Council of a partnership company; the Members' Congress of a cooperative; the owner of a private enterprise; the owner of a one-member limited liability company who does not file a request to open bankruptcy proceedings when the business or cooperative loses its ability to pay, except in cases where a request to apply recovery procedures has been filed.

Thus, from May 18, 2026, the legal representative of the enterprise will not file a request to open bankruptcy proceedings when the enterprise or cooperative loses its ability to pay, unless they have filed a request to apply recovery procedures, they may be fined up to 3 million VND.

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